GoPro's equity turned negative as Q2 2026 revenue fell by almost a third

GoPro, a maker of action cameras, booked revenue of USD 105m in Q2 2026, down 31.3% from USD 153m a year earlier. The net loss widened to USD 51.2m from USD 16.4m, and the net margin fell to -48.8%. Equity moved from USD 97.9m to USD -29.3m, so the equity ratio dropped to -7.4% from 22.3%. Cash stood at USD 27.3m, against USD 58.6m a year before. All figures are consolidated, in US dollars, under US GAAP.

Equity turns negative when accumulated losses exceed everything the owners have put in. A company can keep trading in that state, but only while lenders or owners keep backing it. A consumer hardware business has a further problem: costs such as development and marketing do not shrink as fast as sales, so a fall in revenue hits the operating result first. Here the operating loss was USD 39.0m. The balance sheet alone no longer carries GoPro, and I would watch the cash line.